U.S. Launches Colorado Home Energy Rebates Program

As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) announced today that Colorado is launching its first phase of the federal Home Energy Rebate programs, supported by the Inflation Reduction Act. Colorado is launching the Home Electrification and Appliance Rebates (HEAR) portion of the rebate program to lower energy bills by lowering costs for energy efficiency improvements.

Colorado’s launch is part of the Biden-Harris Administration’s nationwide initiative to provide $8.8 billion in Federal funding for states, territories, and Tribes to lower energy costs and increase efficiency in American homes by making it more affordable to install cost-saving measures such as heat pumps, electrical panels, and insulation, which helps save money on housing costs. These energy-saving measures will save American households up to $1 billion annually in energy costs and support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors. These investments also advance the President’s Justice40 Initiative, which sets a goal that 40% of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.

“From folks living in the Plains to those in the Rockies, big cost savings are coming for Coloradans looking to adapt their home’s energy needs to face the new challenges posed by climate change,” said U.S. Secretary of Energy Jennifer M. Granholm. “Colorado’s HEAR program presents a historic opportunity for residents in the state to save hundreds to thousands of dollars on energy-efficient upgrades and reduce energy bills for seasons to come.”

“Home energy rebates for clean and energy-efficient appliances and upgrades are good for the planet because they help cut pollution, but more importantly, they are good for Coloradan families because they will save money by lowering energy bills,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Congratulations to Colorado for making these game-changing Inflation Reduction Act incentives available to their residents.”

“We are focused on saving Coloradans money on energy bills by increasing access to high-efficiency heat pumps and better insulation for homes,” said Colorado Governor Jared Polis. “Upgrades like these save Coloradans money on utilities, make homes more comfortable year-round, and protect our clean air.”

“Here in Colorado, improving energy efficiency in our homes is essential to achieving our ambitious climate goals and saving families money,” said Colorado Energy Office (CEO) Executive Director Will Toor. “We’re excited to roll out this key funding from the landmark Inflation Reduction Act, which will improve access to home energy upgrades that reduce emissions, lower energy costs, and improve comfort and safety for Coloradans across the state.”

Many Americans spend a large portion of their monthly income to heat, cool and power their homes. To advance the objectives of the rebate programs, DOE is requiring states and territories to allocate at least half of the rebates to low-income households, defined as those earning 80% or less of their area median income, which is expected to benefit many households in disadvantaged communities. States and territories must also submit Community Benefits Plans to ensure good jobs and other economic opportunities are available. To help keep consumers informed and equipped with resources, DOE recently released a Consumer Bill of Rights framework and is encouraging state, territorial and Tribal rebates programs to adopt it.

Colorado’s Home Energy Rebate Programs

Colorado’s HEAR program-one of two Federal Home Energy Rebate programs-will be overseen by the Colorado Energy Office (CEO) and launched in phases.

Available now:

Initially, Colorado’s HEAR program will be delivered through its Weatherization Assistance Program (WAP), which provides income-qualified residents with measures that improve insulation and energy efficiency. Colorado is the first state to fully integrate WAP with a Home Energy Rebates program. By leveraging the program’s existing processes and network of local service providers, CEO is building upon WAP’s strong foundation to deploy HEAR funds to low-income residents. Coloradans may qualify to participate in the WAP program if their household earns 60% or less of the state median income or 80% or less of their county’s area median income.

WAP clients receive all energy efficiency and electrification services at no cost. CEO will use the HEAR program to expand WAP’s reach to more households and provide electric appliances and materials to clients who would not have previously been eligible for electrification upgrades through WAP.

Available soon:

The state expects to broaden the HEAR program in 2025 with direct-to-consumer rebates available to income-qualified households in Colorado (i.e., households earning below 150% of area median income). Eligible owners of single-family homes and multifamily buildings will be able to save up to $14,000 per dwelling unit, including: 

Up to $8,000 for an ENERGY STAR-certified heat pump HVAC.
Up to $8,000 for an ENERGY STAR-certified cold-climate heat pump HVAC
Up to $3,000 for an ENERGY STAR-certified non-cold-climate heat pump HVAC
Up to $4,000 for an electrical panel.
Up to $2,500 for electrical wiring.
Up to $1,750 for an ENERGY STAR-certified heat pump water heater.
Up to $1,600 for insulation, air sealing, and ventilation.
Up to $840 for an ENERGY STAR-certified electric stove, cooktop, range, or oven.
Up to $840 for an ENERGY STAR-certified electric heat pump clothes dryer.

Visit Colorado’s Home Energy Rebates webpage to learn more about the program.

Colorado plans to launch a second Home Energy Rebates program in 2025. Under the Home Efficiency Rebates (HOMES) program, eligible multifamily buildings and residents of manufactured homes can save money on retrofits that reduce home energy consumption.